DraftKings (NASDAQ:DKNG) Lowered to “Hold” Rating by Truist Financial

Truist Financial lowered shares of DraftKings (NASDAQ:DKNG) from a strong-buy rating to a hold rating in a research report released on Tuesday,Zacks.com reports.

A number of other equities research analysts also recently commented on the stock. Morgan Stanley lifted their target price on shares of DraftKings from $50.00 to $53.00 and gave the stock an “overweight” rating in a research report on Friday, January 16th. Redburn Partners set a $35.00 price target on DraftKings in a research note on Friday. Guggenheim reduced their price objective on DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a research report on Thursday, January 29th. Stifel Nicolaus reduced their price target on shares of DraftKings from $46.00 to $44.00 and set a “buy” rating for the company in a research report on Friday. Finally, Zacks Research raised DraftKings from a “strong sell” rating to a “hold” rating in a research report on Friday, January 9th. Twenty-three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $46.10.

DraftKings Stock Down 2.4%

DraftKings stock opened at $26.76 on Tuesday. DraftKings has a 12 month low of $25.73 and a 12 month high of $53.61. The stock has a fifty day simple moving average of $33.45 and a two-hundred day simple moving average of $37.18. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51. The firm has a market cap of $13.32 billion, a price-to-earnings ratio of -46.95, a PEG ratio of 0.47 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, November 7th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.40 billion. During the same period last year, the business earned ($0.60) earnings per share. The company’s quarterly revenue was up 4.4% on a year-over-year basis. Equities analysts predict that DraftKings will post 0.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Gregory Westin Wendt bought 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The stock was purchased at an average price of $30.27 per share, for a total transaction of $302,700.00. Following the completion of the transaction, the director owned 10,000 shares in the company, valued at $302,700. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Harry Sloan purchased 25,000 shares of the firm’s stock in a transaction on Tuesday, November 11th. The stock was bought at an average price of $30.30 per share, for a total transaction of $757,500.00. Following the purchase, the director owned 249,712 shares in the company, valued at approximately $7,566,273.60. This represents a 11.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 166,752 shares of company stock worth $5,252,044 over the last quarter. Company insiders own 47.08% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Several institutional investors have recently added to or reduced their stakes in DKNG. Pandora Wealth Inc. purchased a new stake in DraftKings during the fourth quarter valued at $245,000. International Assets Investment Management LLC increased its holdings in shares of DraftKings by 24.2% in the 4th quarter. International Assets Investment Management LLC now owns 12,424 shares of the company’s stock worth $428,000 after buying an additional 2,424 shares during the last quarter. Allegiance Financial Group Advisory Services LLC bought a new position in shares of DraftKings in the 4th quarter valued at about $282,000. Bluebird Wealth Management LLC bought a new position in shares of DraftKings in the 4th quarter valued at about $369,000. Finally, Gateway Investment Advisers LLC grew its position in DraftKings by 215.6% in the fourth quarter. Gateway Investment Advisers LLC now owns 82,131 shares of the company’s stock worth $2,830,000 after acquiring an additional 56,104 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.